Hi all,
I wish to know is there any provision in the VAT law to an assesse can claim input relating to business activity only??
For example, If a VAT dealer carrying a business of Sale of Computer Peripherial.
On sale of products to customers he wil charge and collect VAT ( Say Rs. 100/-). He purchased some computer product on which he paid VAT to other dealer( Say Rs. 20/-) and also paid VAT to printing & stationery ( Say Rs 10/-) material he purchased for his office.
So my doubt is can he claim Rs 30/- as input vat in the return or only Rs. 20/- as Rs. 10/- paid to printing & stationery does not relate to business activity..
Please giv reply with reference suitable provision.
Thanks in advance..